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USA Mobile Drug Testing

USA Mobile Drug Testing

Location

Available in: Mississippi, Ohio, Indiana and other select states

Employees

1-3

USA Mobile Drug Testing provides an on-the-spot substance abuse testing mechanism to effectively test at a variety of workplaces including school property, DOT, child care facilities, banks, construction companies, senior care givers, government facilities, casinos, etc., during regular operating hours. The company assists the employer by reducing costly down time and transportation liabilities associated with driving individuals to and from a testing site. The services include: on-site pre-employment testing, post accident testing, random drug and alcohol screening, athletic steroid and random school testing, DNA testing, and even fingerprinting.

The way it works is the company sends in a quality control agent to perform the test. The agent secures a restroom by taping off the toilet lid and seat, soap dispenser, and sink. They place a blue dye in the toilet bowl so no one can tamper with the test. The tester fills out all the paperwork right on site so employees never leave the facility. This eliminates time away from the job site and guards against employees having an accident while enroute to the testing facility.  Employers who require employees to leave the job site or even stop on their way in to work are liable for accidents that occur to that employee because  they are considered "on the job".

The tester will seal the samples in an envelope and ship them from any FedEx or UPS site. Within 48 hours the client will have the test results.

USA Mobile Drug Testing VanUSA Mobile Drug Testing Van
USA Mobile Drug Testing consultationUSA Mobile Drug Testing consultation

Key Features

  • Home Based
  • Business to Business
  • No special vehicles, vans, or trailers necessary
  • No employees to start
  • Protected territory
  • Corporate sets up National labs and Medical Review Officer (MRO reviews positives test for accuracy)
  • Assistance identifying key business accounts and D.O.T accounts
  • National accounts
  • No inventory (labs provide collection cups)
  • More and more businesses, local and state governments are mandating random drug testing programs.

Facilities

This franchise can be run from a home office.

Growth & Expansion

USA Mobile Drug Testing is a new company that is experiencing phenomenal growth with 78 territories open in less than one year.  The company is averaging 5 new franchises per month and expects this growth rate to increase as the company becomes better known.

Florida just passed a law that went into effect July 2011, requiring welfare recipients to pass a monthly drug test before receiving their benefits.  According to Catherine Whittenburg of The Tampa Tribune ninety-six percent of the applicants proved to be drug free - leaving the state on the hook to reimburse the cost of the tests. 

The cost of the tests averages $30 per applicant.  Assuming that 1,000 to 1,500 applicants take the test every month,with approximately 2% of the applicants failing the test the state will owe about $28,000 to $43,200 monthly in reimbursements to those who test drug free.  On average a welfare recipient costs the state $134 in monthly benefits, which the rejected applicants won't get, saving the state $2,680 - $4,020 a month. 

Since one failed test disqualifies an applicant for a full year's worth of benefits, the state could save $32,000 to $48,200 annually on the applicants rejected in a single month.  Over 12 months, the money saved on all rejected applicants would add up to $40,800 to $60,000 for a program that state analysts have predicted will cost $178 million this fiscal year.

Other states are preparing similar programs and will be implementing them in the near future which ensures the drug testing industry will continue to grow and expand.

 

Competition

At this time, there is limited organized nationwide competition.  Most competitors are contractors who perform on call testing on a free lance basis.

Support / Training

USA Mobile Drug Testing includes national compliance training as well as 9 days of classroom training at the corporate offices in Tampa, Florida.

Reason for Selling

 

 

Availability

Locations: nationwide except Hawaii, North Dakota, South Dakota, Rhode Island, Maine

Additional Information

Statistics from the DEA indicate that approximately 74% of adults who use illegal drugs are employed. The drug user is 5 times more likely to file a worker’s compensation claim. Employees with drug testing have experienced a 51% reduction in workplace injury rates within two years of implementing a drug testing program.

A recent US labor study reveals that US businesses lose $74 B to $200 B annually to problems related to employee substance abuse. These employees cost the employer $7,000‐$10,000 every year.

Additional Satistics:

  • Reduce worker's compensation insurance premiums as much as 15%
  • Reduce liability insurance premiums by as much as 15%
  • Increase productivity
  • Reduce tardiness
  • Reduce employee absenteeism and sick time
  • Improve employee safety and provide a safer work environment
  • Hire better employees
  • Experience less turnover in employees
  • Decrease worker's compensation claims
  • Improve employee morale
  • Drug test results are used for counseling purposes

Financing Options

Investment: $65-75K  (Single unit includes working capital)
Net Worth: $250k
Liquid: $100k

Our franchise owners are awarded a protected area with a minimum of 10,000 businesses per territory.  Territories are premapped and work with corporate to set up drug free workplace programs and implement on site testing.

Third party financing is possible in an undetermined amount based on the Franchisee's credit and experience. SBA lending may be available. Please ask about sale structure for IRA/401K funding without early withdrawal penalties or additional taxes.



The business has obtained an Independent third party appraisal

Pre-qualification process

A non-disclosure agreement and other financial qualification must be received prior to the disclosure of the business location or other pertinent information about this business.

This is neither an offer to sell nor a solicitation to sell securities.

Jerry and Mendy Tippet

“When a buyer is asked to complete a company’s qualification forms, it’s just good common sense to do it if you are at all interested in their client’s business. From what I have seen, there are far more qualified buyers than there are qualified businesses. The qualification forms are a way of getting to the top of list of good prospects quite easily… a great way to put your best foot forward without a lot of effort.

A quality firm like BizAdvocates just wants to know they have a quality prospect whose financial means is in the ball park for a likelihood of a possible transaction. In our case, Joe and Sandy used their experience with other industry professionals to help us buy the company we inquired about initially with better terms than we expected and better tax advantages for the owners which created a win-win for all.”

Buyers - Jerry and Mendy Tippets
a N. Idaho based Manufacturing Company
Joe and Sandy Camp - each a BizAdvocate
represented the Exiting Party in the 2009 transaction
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